auctions_bidding

auctions_bidding - Overview: Auctions and Bidding...

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Overview: Auctions and Bidding • Introduction to Auctions – Open-outcry: ascending, descending – Sealed-bid: first-price, second-price • Private Value Auctions • Common Value Auctions – “Winner’s curse” • Auction design affects “gaming” options Examples of Auctions • Internet • EBay.com, Amazon.com, Liquidation.com • Government • Treasury Bills, mineral rights (e.g. oil fields), assets (e.g. privatization) • Electromagnetic spectrum •S to ck s • IPO: Google • Repurchases • Procurement auctions/Subcontracting • Automobiles: Valeo (GM, Daimler-Chrysler, etc.
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• Number of objects – We focus on single object auctions, but ideas apply to multi-unit auctions • Role of information / Type of valuation – Private value vs. Common value • Rules of auction – Ascending (Ebay or Sotheby’s), first-price (oil tracts), etc. . Auction Formats • Open outcry auction – Ascending Auctions (English) • Auctioneer announces ever increasing prices to solicit bids. Continues until only one person left in. – Descending Auctions (Dutch) • Auctioneer announces decreasing prices until someone puts up their hand. • Sealed bid auction
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auctions_bidding - Overview: Auctions and Bidding...

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